The Monocle Daily Tariffs, budgets and politics: how the West is dealing with uncertain economies
Jul 16, 2025
Marie LeConte, a political journalist and author, and Philip Coggan, a business journalist and author of 'The Economic Consequences of Mr Trump,' dive into the complex landscape of global trade. They discuss the implications of Trump’s tariffs and whether countries should retaliate. The conversation shifts to public support for budget cuts in France and other nations facing financial strain. With wit and insight, they explore how these economic strategies are perceived by voters and their potential effects on local and international politics.
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Misunderstanding Tariffs' Effects
- Tariffs imposed by the US mainly hit American consumers, not foreign countries as Trump believes.
- Global supply chains mean tariffs tax domestic producers, worsening economic effects contrary to Trump's goals.
EU Tariff Response Ambiguity
- The EU's response to US tariffs seems chaotic, mixing tough rhetoric and calls for unity.
- It's unclear if this is a coordinated strategy or disorganized reactions by member states.
Market Calm Risks Trade Escalation
- Markets no longer react strongly to new Trump tariff threats, reducing pressure on him to back down.
- This deadlock risks escalating tariffs if countries don't give Trump negotiation leverage.